GIFTS THAT CHANGE LIVES

AN EASTER SEALS GUIDE TO GIVING

© The Stelter Company

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The Rewards of Giving Planagiftthatmeetsyourneeds

A Current Will or Trust Vitaldocuments

Remember Us In Your Will Makingabequestiseasy

What to Give Assetsworthdonating

Your Retirement Plan Assets Costlytoinherit

Customize Your GivingChooseanoptionthatmatchesyourgoals

Life Insurance Aversatiletoolformanypurposes

Charitable Gift AnnuityAgiftthatpaysyouforlife

Real Estate Atax-wisegift

Charitable Remainder Annuity Trust AgifttoEasterSealswithpredictablebenefitstoyou

Charitable Remainder Unitrust Agiftwithbuilt-inflexibility

Charitable Lead Trusts Preserveaninheritance

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TABLE OF CONTENTS

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THE REWARDS OF GIVINGPlan a gift that meets your needs

POTENTIAL BENEFITS OF OUTRIGHT GIVING AND GIFT PLANNING

s we confront the challenges of the future, we know that the

generosity of those who believe in Easter Seals will make all

the difference in the lives of the people we serve.

A cash gift is one of the easiest methods for making a charitable

contribution. You will see the immediate results, and, if you itemize on your

tax return, you will enjoy a tax deduction on the full value of your gift.

There are many other ways to give that, in addition to making a

difference in the lives of people with a disability, can help you improve

your financial and tax situation—often right away.

This booklet allows you to explore opportunities that combine

your philanthropic giving with your financial needs and tax planning

strategies, so you can secure your own financial future, as well as ours.

To design a gift that benefits you and Easter Seals, we recommend

that you obtain professional counsel. We can work with your advisors

to help you plan for tomorrow and receive maximum benefits today.

» Receive a current income tax deduction.

» Eliminate long-term capital gains tax.

» Increase income and effective rate of return.

» Reduce possible estate and gift taxes.

» Leave a lasting legacy.

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A CURRENT WILL OR TRUSTVital documents

BENEFITS

ave you put off updating your Will or living trust? Maybe

you think it costs too much to do. Perhaps you are having a

hard time deciding how to leave your money, or you may simply be

uncomfortable with making end-of-life plans.

Drafting these documents may seem like a daunting task at first,

until you realize the peace of mind and all the good that comes from

having them.

A bequest from either a Will or living trust lets you pass any

amount you wish to Easter Seals free of estate tax. You can give cash,

specific property or a percentage of your estate, with restrictions or

without. Because your gift doesn’t come to us until after your lifetime,

you can change your mind at any time.

To make sure your Will accomplishes

your goals according to your wishes,

we recommend that you obtain the

professional counsel of an attorney

who specializes in estate planning.

» Provide for your family after your death.

» Distribute your assets according to your wishes.

» Save on estate taxes with proper planning.

» Leave a legacy without giving up assets today.

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REMEMBER US IN YOUR WILLMaking a bequest is easy

any people have good

intentions about providing

for Easter Seals, but they do not always

follow through with their plans.

Perhaps you have been considering a

gift to us, but your cash flow prevents

an outright gift.

When considering the various deferred gifts discussed in this

booklet, please keep in mind that one of the simplest ways for you to

make a future contribution to us is through your Will.

Example: To expedite your good intentions, here is a recommended

clause for making an outright, unrestricted bequest to us.

EasterSealsistoreceivethe(sumof[specificamount]

or[percentage]percentoftherest,residueandremainder

ofmyestate).Thisbequestisunrestricted,andtheboard

orothergoverningbodymayuseandexpendthebequest

inanymanneritdeemsappropriate.

If you make annual gifts to us and would like to continue your

support after your lifetime, you can arrange an endowed gift through

your Will. This ensures that your gift will continue in perpetuity.

If you are planning to make us one of your beneficiaries, we

encourage you to tell us now. That way, we can help you obtain the

greatest possible satisfaction from your gift.

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WHAT TO GIVEAssets worth donating

BENEFITS

ny type of asset that you

irrevocably donate to a charitable

organization like Easter Seals results in a

current income tax deduction, but there

may be other tax benefits from your

contribution.

If you contribute appreciated

securities that you have held more than one year, you have

the added benefit of eliminating the tax on the gain.

You can also give Easter Seals tangible personal property (like an

art object, prized collection or antique) and take a deduction for its

full fair market value if the gift is used for our exempt function.

These are but two of the types of assets you can donate outright to

us today. Using assets other than cash allows you more flexibility when

planning your gift, and there are even more potential benefits if you

plan your gift creatively.

» Receive a current income tax deduction for gifts of securities.

» Provide relief from capital gains tax with gifts of securities.

» Make meaningful gifts with donations of personal property.

» Help fulfill Easter Seals’ mission with your contributions.

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EXAMPLEDonor

Dave has stock currently valued at $20,000 that he purchased for $4,000 several years ago, which will result in a $16,000 capital gain if he sells the securities. He is in a high marginal income tax bracket.

Tax-Saving StrategyDave donates the stock to Easter Seals.

Benefits» Dave receives an income tax charitable deduction

for the full fair market value of $20,000.» Dave bypasses the taxes on the $16,000

capital gain.» Total tax savings from capital gains and income

taxes reduces the out-of-pocket cost of his gift.

YOUR RETIREMENT PLAN ASSETSCostly to inherit

BENEFITS

id you know that most retirement

plan assets are facing double

taxation? Assets remaining in retirement

plans funded with pretax dollars are

considered “income in respect of a decedent”

at your death. So the amount left to heirs

is diminished not only by estate taxes, but the recipient also must pay

income taxes on it!

If you can make other provisions for your family, there is a better

option for your retirement plan assets—a charitable gift after your lifetime.

To name us as the beneficiary, first consult your advisor, then

instruct the plan administrator of your decision and sign whatever form

is required. For an IRA or Keogh plan you administer personally, notify

the custodian in writing and keep a copy with your valuable papers.

» Eliminate all federal income and estate taxes when you

name Easter Seals as the primary beneficiary.

» Receive partial savings when you give us a specific

amount before giving your family the remainder.

» Name Easter Seals as the contingent beneficiary, which

allows for greater flexibility.

» This cost-effective gift saves less-taxed assets for loved ones.

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EXAMPLEBill’s Estate PlanBill’s estate contains his personal possessions, an insurance policy and a sizable profit-sharing account. Bill wants to provide for his children, but he also wishes to leave a charitable gift—with the rest of his estate passing to his children.

Tax-Saving StrategyHe considers naming Easter Seals as beneficiary of his profit-sharing account.

Benefits» Assets in the profit-sharing account pass to

Easter Seals free of any income tax obligation.» The value of Bill’s gift to charity qualifies for an

estate tax charitable deduction.» Bill’s children benefit from other assets in his estate

that are free of income taxes.» Bill can change his mind at any time.

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Your Gift

Your Goal

How to Make the

Gift

Your Benefits

CUSTOMIZE YOUR GIVINGChoose an option that matches your goals

Bequest

Defer a gift until after your lifetime.

Name us in your Will or living trust. (Designate a specific amount, percentage or share of the residue.)

• control of your assets for your lifetime

• donation exempt from federal estate tax

Outright gift of cash

Make a quick and easy gift.

Simply write a check or make a cash donation now.

• immediate income tax deduction

• removes property from future taxable estate

Outright gift of securities

Eliminate tax on long-term capital gains.

Contribute long-term appreciated stock or other securities.

• immediate charitable deduction

• elimination of long-term capital gains tax

Outright gift of personal property

Share your enjoyment of a collection or other personal item.

Donate tangible personal property related to our tax-exempt function.

• charitable deduction based on the full fair market value

Gift of retirement assets

Avoid the twofold taxation on IRAs or other retirement plans.

Name Easter Seals as the beneficiary of your retirement account after your lifetime.

• allows you to make the gift from the most highly taxed assets, leaving better assets for family

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Gift of life insurance

Make a large gift with little cost to yourself.

Change ownership on a life insurance policy you no longer need.

• current income tax deduction

• possible future deductions through gifts to pay future premiums

Retained life estate

Give your personal residence or farm now, but continue to live there.

Designate ownership of your home to Easter Seals, but retain occupancy for life.

• valuable charitable income tax deduction

• lifetime use of residence

Gift of real estate

Make a gift of property no longer needed and generate an income tax deduction.

Donate the property to Easter Seals.

• immediate income tax deduction

• reduction or elimination of long-term capital gains tax

Charitable remainder trust

Secure a fixed and often increased income, or create a hedge against inflation.

Create a trust that pays income annually; the principal is retained for Easter Seals.

• variable or fixed income for life

• immediate income tax charitable deduction

Charitable lead trust

Reduce gift and estate taxes on assets you pass to children or grandchildren.

Create a charitable trust that pays fixed or variable income to Easter Seals for a specific term of years; the principal is retained for heirs.

• reduces your taxable estate

• property kept by your family, often with reduced gift taxes

Charitable gift annuity

Supplement income with steady payments that are partially income tax–free.

Establish a charitable gift annuity contract with us that pays a set amount for life.

• current and future savings on income taxes

• fixed payments for life for one or two individuals

LIFE INSURANCEA versatile tool for many purposes

BENEFITS

hen you obtained your life insurance policies, you had a need

for them, but perhaps you do not need all that coverage today.

If you are thinking about a contribution to Easter Seals, a

gift of your life insurance could be a sensible and generous course of

action. If you make us owner of the policy, you will normally receive

an income tax deduction for the policy’s fair market value or cost

basis, if lower, on the date of the gift. If you name us beneficiary of

the policy (and retain ownership), you won’t be eligible for current tax

benefits because the gift is revocable at any time.

Whether you name us as owner or beneficiary of the policy, your

estate will not pay estate taxes on the policy proceeds we receive.

Name Easter Seals as owner.

» Receive a charitable income tax deduction when you

name us as beneficiary and assign us ownership.

» Receive future income tax deductions when you name us

as owner and continue to pay premiums.

Name Easter Seals as beneficiary.

» Obtain flexibility by naming us as primary beneficiary but

keeping ownership.

» Name us as contingent beneficiary and secure your

family’s needs first.

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CHARITABLE GIFT ANNUITYA gift that pays you for life

BENEFITS

he concept of a gift annuity is simple.

You donate assets that we invest. We

agree to make fixed payments to you for life

(and, if desired, for another beneficiary’s

lifetime). At the end of the agreement, the

funds are available for our use.

A charitable gift annuity is attractive because it ensures you a

stream of income that you can’t outlive. It is also a superb way to

make an enduring gift to strengthen Easter Seals when the balance

becomes available for our important needs.

The rate you receive is determined by your age on the date of the

gift. Annuity rates are higher for older donors, but the rate remains

constant once the gift is made. For two lives, the rates are slightly

lower because the period of payment is usually longer.

» Receive secure lifetime payments from a stable charity

that has been around for almost a century.

» Obtain a charitable deduction for a portion of the value

of the gift.

» Secure partially income tax–free payments.

» Save on capital gains taxes when you contribute

appreciated securities.

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REAL ESTATEA tax-wise gift

BENEFITS

re you thinking of selling land or a building? Beware of capital

gains tax!

If you sell your primary residence, you can exclude up to $250,000

($500,000 if you are married) of the gain. This tax break does not apply to

other types of real estate, so consult your advisor for alternatives to selling.

A charitable contribution of real estate—whether it is your personal

residence, a vacation home, a farm, commercial real estate or vacant

land—will give you numerous advantages.

When you give your home or other real estate to Easter Seals, you

create an enduring testimonial of your interest in our mission. Your

personal satisfaction is also complemented by valuable tax benefits.

A retained life estate is an option that enables you to make a gift of your

home to us but remain in it for the rest of your life. The property doesn’t

have to be your primary home, but it must be a personal residence.

You’ll still pay property taxes, maintenance costs and insurance.

» Receive an income tax charitable deduction for the full

fair market value.

» Eliminate tax on a portion of the property’s appreciation.

» Avoid the hassle of trying to sell the property.

» Make a gift to support a great cause, and reduce your

taxable estate.

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CHARITABLE REMAINDER ANNUITY TRUSTA gift to Easter Seals with predictable benefits to you

BENEFITS

f you are disappointed in the yield from your current

investments in the stock and bond markets, yet you want to

eliminate the capital gains tax should you sell, consider a charitable

remainder annuity trust.

This plan will pay you, year after year, the same dollar amount

you choose at the outset. The income payments are fixed, based

on the starting valuation. Then, after your (or other named

beneficiary’s) lifetime and the lifetime of the survivor beneficiary

(if desired), the balance in the trust is available to support

Easter Seals’ mission.

The charitable remainder annuity trust is more than an eventual

gift to Easter Seals. It lets you give away the tree and still keep the

fruit because you receive an income stream from your donation.

» Receive a fixed dollar income paid annually,

semiannually, quarterly or monthly.

» Obtain a partial charitable deduction.

» Increase your income from a low-yield asset.

» Gain freedom from investment management.

» Eliminate up-front capital gains tax on long-term

appreciated assets used to fund the trust.

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CHARITABLE REMAINDER UNITRUSTA gift with built-in flexibility

BENEFITS

charitable remainder unitrust is like a combination of a gift

and an investment plan. You place assets in trust, and you

(and/or another beneficiary) receive lifetime income from them—

then we receive the remainder.

With a unitrust, the amount you receive as income is a set

percentage of the value of the trust assets, redetermined annually.

You also have the option of choosing one of five variations

of unitrusts. A unitrust with a net income plus makeup provision, for

example, pays only the actual trust yield, even if it is below the stated

percentage. Then in later years, when the beneficiary needs more

income, the trustee can invest the assets to generate a higher return

and make up earlier deficiencies.

This option is excellent for devising a supplemental retirement

plan. Easter Seals or your advisor can provide you with more details.

» Receive lifetime variable income (often greater than

the yield on contributed assets).

» Obtain a sizable income tax charitable deduction.

» Eliminate up-front capital gains tax if you donate long-

term appreciated securities.

» Make a significant gift to one or more charitable organizations.

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EXAMPLEDonor

Jane, 60, has stock currently valued at $100,000 and yielding a 2 percent dividend.

Gift VehicleCharitable remainder unitrust

How It WorksJane transfers the stock to the unitrust and arranges to receive in quarterly payments 7 percent of the market value of the unitrust assets as determined annually.

Benefits» Jane receives an income tax charitable deduction

for the charitable portion.» The first year she receives $7,000 (7 percent of

$100,000), a $5,000 increase in income.» If the value of her trust increases, so will her income

payments. Jane will then have a built-in hedge against inflation.

CHARITABLE LEAD TRUSTSPreserve an inheritance

POTENTIAL BENEFITS

re you concerned about the

possibility of the government

taking a huge part of the assets you were

planning to leave your heirs?

There is a strategy to pass assets to your

family with significant estate tax savings

while making a gift to Easter Seals. It is

called a charitableleadtrust.

After we receive income from assets in the trust for a period of

years, the principal goes to your selected loved ones, with estate or

gift taxes usually reduced or even eliminated.

The lead trust is an exceptional way to transfer property to your

children or other heirs at minimal tax cost. It is ideal if you are willing

to forgo investment income on an asset but do not want to have estate

taxes reduce the principal passed to heirs.

With a lead trust, you carry out your philanthropic plans over the

coming years and save on taxes.

» Fund the trust during your lifetime or through your Will.

» Support our mission through annual income payouts.

» Reduce your taxable estate and potential gift taxes.

» Keep assets in the family.

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The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.

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MAKE A PLAN TO MAKE A DIFFERENCE

ood planning offers the

ability to provide for your

loved ones, create a legacy for

future generations of your family

and for your community, and to

make a difference—by giving to

organizations like Easter Seals.

How and what you give to

friends, family, loved ones and

charities are guided by the values

that were passed on to you from

previous generations, by your

goals and by your imagination.

For nearly a century, Easter Seals has been making a difference in

the lives of people with disabilities and their families. You have helped

make it so, continuing a tradition grounded in a uniquely American

idea: that one person really can make a difference.

You have shown through your support that helping some of the

most vulnerable among us is important to you. If preserving Easter Seals’

ability to help the next generation is one of your hopes for the future,

we urge you to consider including Easter Seals in your plans.

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Easter SealsGift Planning233 South Wacker Drive, Suite 2400Chicago, IL 60606

(800) 221-6827, Ext. 7135www.easterseals.com/legacy